US consumers are more into e-gifts

Although gift cards remain a popular gifting choice, e-gifts, which are virtual cards delivered to recipients via email, text message or social media, are becoming increasingly popular in US, a recent research study reveals.

The key drivers of e-gift purchases among consumers are their fast electronic delivery (51%), ease of purchase (41%) and not having to send a physical gift (35%), according to a survey issued by market research company Blackhawk Network, bizreport.com reports.

Of the physical gift card buyers surveyed, 53% also purchased an e-gift within one year period and 94% purchased more or the same amount of e-gifts in the same time frame, compared to the previous time frame.

One of the key attractions to e-gifts is that redemption can be done in multiple ways - online, via mobile or in-store. Most e-gift recipients (69%) redeem e-gifts online but a significant number (46%) do so in-store. As with physical gift cards, many (82%) of e-gift recipients spend more than the value of the gift, with 76% prompted to use their e-gift by promotions.

Of those who had never received an e-gift, more than half (56%) would be interested in getting one. Furthermore, the reason shoppers who had never purchased an e-gift had not done so was because they were not aware of the option.

Roughly two billion gift cards were purchased in 2014 in the US, according to consulting firm A.T. Kearney. The National Retail Federation says gift cards have been the most-requested gift from 2006 onwards. E-gift cards currently make up 5% of the market but, by 2017, that is expected to double in volume. The survey was conducted on 2,000 US consumers.